WTI Crude Oil Surges Amid Middle East Tensions
The West Texas Intermediate (WTI) crude oil price surged to its highest level in 14 weeks, settling above $94.00 on Wednesday after a tumultuous week of tanker attacks and military strikes in the Middle East.
The price increase comes as tensions between the US and Iran continue to escalate, with both countries accusing each other of aggression in the Strait of Hormuz. On Tuesday, US forces destroyed five Iranian tankers in the Gulf of Oman and off Kharg Island, while the Revolutionary Guards claimed they had fired on two American vessels and eight tankers near the strait.
The attacks have disrupted shipping in the region, with freight rates soaring as a result. A supertanker on the Middle East Gulf to China route earned just under $704K a day last week, against just over $196K on the US Gulf run to the same buyers.